I also had this problem, remove the dongle, uninstall the software (add/remove programs) reboot the computer. Install the software and drivers again. Reboot the computer. When its started insert the dongle. The O/S should detect the device and install the drivers, if it prompts for drivers ensure the CD is in the drive and search for drivers. Once its found it and installed reboot the machine again. Once its booted load bluesoliel and it should say in right had bottom corner "Bluetooth Started" if so use the software to search fo your phone.
Regards,
Jason
Jasonm, October 2006